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tv   [untitled]    March 28, 2012 12:00pm-12:30pm PDT

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>>ç good afternoon. today. i am phil ting. çwe are happy to announce the first audit of foreclosure records in the state of california. what we startedç with, we have been facingç this foreclosure crisis for a number of years. little by little, we had çtaxpayers come in who were either refinancing or pursue foreclosures, and wanted our assistance in looking at their çdocuments and county land
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records. historically, the process we have in california is a non- judicial foreclosure process. çyou do not need to go to court if you do not want to. what developed quite a while ago, beforeç security, mortgag- backed securities, fannie mae, freddie mac. it is a peer the antiquated system that has not kept up with the changes in the industry. i think what this report shows is that the system is completely broken, for us, as county recorder, the mortgage industry, the system is broken for consumers. we have plenty of laws on the books but they are clearly not being followed. equitas reviewed this together with us.
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each of those records show at least one clear violation of the law. çanother percentage applied to suspicious activities. that is like backdating documents. not a violation of law, but odd when you submit documents that are backdated two yearsok prior, submitted on behalf of the agencies that no longer exist. almost every single document we reviewed of the 2405 foreclosuresç between january 2009 and november 2012 showed that. a sample of 382 documents between -- of that total -- 2405
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foreclosure sales. the main challenge we face is we want to ensure, asñr reporters, that we have a clear and transparent title process. i think we owe that not just to the taxpayers and property owners in san francisco, but we owe that to the entire state. state lawç governs everything e do. it is so important, in a state that has a non-judicial foreclosure process, that the law is followed. the reason other states have been able to pick up on these items faster is because people have to go in front of judges. they understand what all laws are and have shown less tolerance for people not following the law than here in california. we have an issue of assignments.
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75% of the assignments we looked at show the issues. for one example, we have a category of self assignments of the deed of trust. 21% of deeds of trust were self assigned. what that means is the lender of record is not signing it over to a new lender. it is the new lender signing the document over to him or herself. it would be like me taking your home but assigning it to myself without your authority. it seems very odd that 21% of the time that occurred. obviously, that is highly problematic, a violation of the law. 85% of the time there was a substitution of trustee. the trusty that file the notice of the fault was not the same name on the deed of trust.
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that means the actual trustee in charge -- almost being an independent third-party to foreclose on somebody -- was not the trustee of record. somehow, they are taking this property. if you are buying a foreclosed sale, basically, we have institutions that are saying, you are buying this, but for whatever reason we do not own this property, all you get back is your deposit. we are not saying that we do not own the property there. that is problematic. that is 85% of the time, page 9 of the reports. to give you an idea of this suspicious activity, false claims of beneficiary status.
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the entity claiming to be the beneficiary of the deed of trust is not the actual current beneficiary on file with the property is sold at auction. you actually have a party that is selling a home that -- at an auction, that according to our land records, has no connection to it. you may ask yourself -- as i have, walking through this report -- how did this happen? clearly, there is no oversight. there is a process that is pretty strict, in terms of what the law says, but a complete lack of oversight. the only oversight that can happen is, if i, as a consumer, was foreclosed on, and i brought it to a court of law where they would enforce this process. we are not saying contracts were
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not broken in terms of whether people were able to pay their loans or not. we are not saying whether anybody individually, parties as a whole were bad actors. what we are saying is, on the whole, california has borne the brunt of this foreclosure crisis. what we are seeing is the process of where we are foreclosing property, taking property from the county land records is 100% broken, and is not working for any of us at this point. çwe obviously know there was a recent settlement from the attorneyç general's, 49 states across the country. çobviously, we think it did a good job of getting retribution back for homeowners who were perhaps victims of this process.


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